Studio / Express Gifts

SAPFO

Sorry if this is in the wrong place, and can a mod move it if it is please.


My gf had a Studio account for a few years, but the payments never seem to end with all the charges and crap they take off. They seemed to be taking around 40% of any fee paid to them.


EDITED: Just looking at July statement. It has Default sum £20, and Service charge £13.66. What are these?

amersall

Hi there, the service charge is interest on the balance owing (assuming this is not paid in full each month) the default sum could be for a missed payment?.

SAPFO

Thank you for the reply. Yes, the default is for missed payment as she stopped due to it seeming to never end. How can she find out what she has purchased, and how much they have charged her? Are the default charges legal?

amersall

Other Financial Information

APR Calculation
In calculating the APR we have not taken into account any changes which we may make to our interest rates, or any other charges which we may introduce or vary at any time by giving you notice.
Total Charge for Credit
Example credit limit of £275: If you make purchases up to the full amount of this credit limit, assuming that you repay your outstanding balance over a 12 month period by way of equal instalments (first instalment within 28 days) and that any interest rates remain the same throughout this period, the total charge for credit under this agreement will be £40.56p (if you pay by direct debit) and £59.01p (if you pay by all other methods).
Interest
The Interest ("Service Charge") rate is 29.5% per annum if you pay by direct debit or 44.9% per annum if you pay by other methods.
Provided we receive payment of the entire balance by the date shown on the statement no Service Charge will be applied.
The Service Charge is variable and is calculated as follows: 2.0 pence in the £1 every 28 days if you pay by direct debit; or 2.9 pence in the £1 every 28 days if you pay by other methods. A minimum Service Charge of £1 shall apply.
Where any part of an outstanding balance shown on any statement ("Previous Statement") is brought forward to the next statement, we will add a Service Charge to such brought forward balance, together with a pro rata Service Charge in relation to any purchases added to the outstanding balance on your Previous Statement for the period between despatch of each item purchased and the date of the Previous Statement. No Service Charge will be charged on any Default Sums incurred by you after 18th September 2008.
Allocation of payments
You hereby direct us and you agree that such direction is repeated at the time of making every payment, to allocate payment to the sums which make up your outstanding balance in the following order: 1. All Default Sums as charged and shown on your statements; 2. All Service Charges as charged and shown on your statements; 3. All Payment Protection Plus Property premiums as charged and shown on your statements; 4. All other financial products supplied as charged and shown on your statements; 5. All purchases of goods shown on your statements; 6. All purchases of goods not yet shown on a statement.

Key Information

Charges
Default Sums: Should you fail to make a payment or pay less than the minimum amount due by the specified date and we or someone acting for us have to remind you to make such payment, we reserve the right to charge you: a Default Sum of up to £20 each time that we have to remind you; and the amount of any other losses and reasonable costs we incur as a result of your default. These will include (but are not limited to) the costs of tracing you, notifying you of your default and enforcing payment of any amount due. Other Charges: Any purchases you make will be subject to compulsory postage and packing charges. All charges shall be added to your outstanding balance.
No Cancellation Rights
This agreement is non-cancellable. You have no rights to cancel it under the Consumer Credit Act 1974, the Timeshare Act 1992 or the Financial Services(Distance Marketing) Regulations 2004.
MISSING PAYMENTS
Missing payments could have severe consequences and make obtaining credit more difficult.
IMPORTANT – READ THIS CAREFULLY TO FIND OUT ABOUT YOUR RIGHTS
The Consumer Credit Act 1974 lays down certain requirements for your protection which should have been complied with when this agreement was made. If they were not, the creditor cannot enforce this agreement without getting a court order.
The Act also gives you a number of rights. You can settle this agreement at any time by giving notice in writing and paying off the amount which you owe under the agreement.
If you would like to know more about your rights under the Act contact either your local Trading Standards Department or your nearest Citizens Advicecatalogue, or any other separate written notice. Changes will happen at least 7 days after we tell you about them, or upon the expiry of such notice period as is required by law.
Should you fail to make payments or pay less than the minimum amount due by the specified dates, we reserve the right to treat this failure as a material breach of your obligation to us, in which case we may ask for immediate repayment of your entire outstanding balance in accordance with the Consumer Credit Act 1974.
We may transfer to any other party any or all of our rights and duties under this agreement at any time (including, without limitation, our duty to provide credit to you). We may do this without telling you. Your rights under this agreement and your legal rights (including those under the Consumer Credit Act 1974) will not be affected.
If any provisions of this agreement are found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.
The policy pages of this website and your catalogue contain specific terms and conditions relating to (i) the goods or services which you purchase; (ii) the general operation of your account; and (iii) the processing of your personal data by us.
By placing your order you agree to accept our terms and conditions which include this credit agreement, and you agree to be bound by these provisions and those contained within this website and the catalogue

SAPFO

The point is, the balance now seems a hell of a lot more than the credit she took, which she paid monthly for years.

Premier_2

SAPFO wrote: »

The point is, the balance now seems a hell of a lot more than the credit she took, which she paid monthly for years.

Try googling "Compound Interest"

The amount owed will continue to grow until she settles the account in full ... and it'll grow a lot faster now she's stopped paying completely, and will probably adversely affect her credit rating.

gsdg

Premier, whose side are you on?

Premier_2

gsdg wrote: »

Premier, whose side are you on?

I'm not on anyones side.

The OP came here looking for help and advice, and that is what I've offered.